Do I Get Super on Bonuses, Commissions & Allowances? (OTE Guide 2026)
Which payments attract superannuation? Bonuses: usually yes. Commissions: yes. Allowances: it depends. Complete guide to ordinary time earnings (OTE) with examples.
The simple rule: super is paid on ordinary time earnings (OTE)
Superannuation guarantee (SG) is calculated on your ordinary time earnings (OTE), not just your base salary. OTE includes all amounts paid for ordinary hours of work, including commissions, shift loadings, and some allowances and bonuses. The definition of OTE comes from the Superannuation Guarantee (Administration) Act 1992 and has been clarified by ATO rulings. The key principle is: if a payment relates to work performed during your ordinary hours, it is likely OTE and attracts super. If it compensates you for something outside ordinary hours (like overtime) or reimburses an expense, it is likely not OTE. This distinction matters because it can add thousands of dollars per year to your super. On a $5,000 annual bonus, the super component at 12% is $600 that your employer must pay into your fund. Many employers get this wrong — either deliberately or through genuine confusion about the rules.
Payments that DO attract super (OTE)
The following payments are ordinary time earnings and your employer must pay 12% SG on them: base salary and wages for ordinary hours, commissions (regardless of how they are calculated or when paid), bonuses that relate to work performed during ordinary hours (including performance bonuses, sales bonuses, and Christmas bonuses that reward ordinary-hours work), shift loadings and shift penalties for ordinary hours (not overtime shifts), casual loading (the 25% loading is part of OTE), annual leave pay, personal/carer's leave pay, long service leave pay, leave loading (the 17.5% loading on annual leave), payment in lieu of notice, and on-call and standby allowances where the employee is required to be available during ordinary hours. Director's fees also attract super. The key test is always whether the payment relates to ordinary hours of work. If your employer pays you a quarterly performance bonus based on your KPIs achieved during normal working hours, that bonus is OTE and must have super calculated on it.
Payments that DON'T attract super (not OTE)
The following payments are generally not OTE and do not attract super: overtime payments (hours worked beyond ordinary hours), reimbursements for expenses (travel, tools, meals, uniforms), workers' compensation payments, redundancy pay (the NES redundancy component), unused annual leave and long service leave paid out on termination (these are specifically excluded by legislation), employment termination payments (ETPs), salary sacrifice amounts that go to super (already a super contribution), and most fringe benefits. Expense-related allowances are generally not OTE if they reimburse a specific expense — for example, a tool allowance, car allowance, or travel allowance. However, if an allowance is paid regardless of whether the expense is incurred (a flat amount each pay period not linked to actual costs), the ATO may treat it as OTE. The distinction between overtime and ordinary hours is critical: penalty rates paid for ordinary-hours work on weekends or public holidays are OTE, but penalty rates on hours that are overtime are not.
The tricky ones: bonuses, allowances, and common disputes
Some payments sit in a grey area. Annual bonuses or retention bonuses: generally OTE if they relate to work performed during ordinary hours, even if paid as a lump sum. Discretionary bonuses: the ATO position is that if a bonus is paid regularly or predictably, it is likely OTE regardless of the employer calling it "discretionary." If it is genuinely one-off and ex gratia (a true gift with no connection to work performance), it may not be OTE — but this is rare. Sign-on bonuses: not OTE as they do not relate to work already performed. Allowances for working in difficult conditions (heat, heights, confined spaces): generally OTE if paid for ordinary-hours work. Motor vehicle allowances: not OTE if they reimburse actual travel expenses; may be OTE if they are a flat payment regardless of travel. Meal allowances: not OTE if compensating for an actual meal expense during overtime; may be OTE if paid regularly regardless of whether overtime is worked. If you suspect your employer is not paying super on a payment that should attract it, check the ATO's detailed OTE list or contact the ATO super guarantee line.
How to check if your employer is paying super correctly
First, identify all your earnings components: base pay, bonuses, commissions, loadings, and allowances. Then work out which are OTE using the rules above. Calculate 12% of your total OTE for the quarter. Compare this to the super contributions appearing in your super fund account (check via your fund's app or website, or through myGov linked to the ATO). Remember that employers currently pay super quarterly (by the 28th of the month following the quarter end), so there may be a lag. From 1 July 2026 under Payday Super, contributions must be received within 7 business days of each pay run. If there is a shortfall, raise it with your employer in writing first. If they do not rectify it, you can report unpaid super to the ATO using the online reporting tool. The ATO can conduct an audit and compel the employer to pay the shortfall plus the Super Guarantee Charge (which includes 10% interest and a $20 per employee per quarter admin fee). There is no time limit on claiming unpaid super — the ATO can go back to 1992.
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General information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.
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